NEW YORK, March 13 - Genomic Solutions has wrapped up its acquisition of GeneMachines, the company said last night.
The final price was $8.1 million, around $200,000 shy of Genomic Solutions' estimate earlier this month when it announced plans to buy the array-instrumentation company.
"With GeneMachines' focus on the 'front end' DNA microarray processes of sample preparation and microarray production, and Genomic Solutions' focus on the 'back end' processes of hybridization, imaging and analysis, we have a complementary set of products that we believe makes us one of the leading companies in the DNA microarray systems and instrumentation market," said Jeff Williams, president of Genomic Solutions.
To that end, Genomic Solutions, which is a wholly owned subsidiary of Harvard Bioscience, plans to sell and distribute GeneMachines' "entire genomic product line" and maintain the GeneMachines brand name internationally, according to Genomic Solutions.
"We believe there is an opportunity to leverage ... GeneMachines products through our existing distribution channels," Williams said in a statement. He explained that GeneMachines' sales and service functions will be integrated with the Genomic Solutions' commercial organization, and that manufacturing, R&D, and "certain marketing and customer support personnel" will remain in GeneMachines' current San Carlos, Calif. facility. It was not immediately clear whether lay offs are anticipated.
All told, GeneMachines is expected to add approximately $6 million to Genomic Solutions' top line this year. The company develops and distributes high-throughput instrumentation for DNA and protein microarray production, nucleic acid sample preparation, and DNA synthesis.
Harvard Biosciences, which absorbed Genomic Solutions in October 2002, has agrees to hand its subsidiary a $6 million bridge loan to "partially fund" the acquisition, and anticipates closing a $12 million revolving credit facility that would be available either to fund future acquisitions or to be used as working capital. The credit facility includes the $6 million bridge loan, Genomic Solutions said.